Simbhaoli Sugars Limited reported a net loss of ₹6,960.62 lakh for the financial year ended March 31, 2026, as the company continues to operate under the Corporate Insolvency Resolution Process (CIRP). The total income from operations for the year declined to ₹83,566.82 lakh from ₹99,669.05 lakh in the previous year. For the quarter ended March 31, 2026, the company recorded a net loss of ₹174.20 lakh on a total income from operations of ₹19,221.11 lakh.

The audited consolidated financial results were certified by Dayal Chand Popli, Chief Financial Officer, and taken on record by Anurag Goel, the Interim Resolution Professional (IRP), on July 13, 2026. The IRP assumed control of the management and operations of the company following an order by the National Company Law Tribunal (NCLT), Allahabad bench, dated July 11, 2024. Consequently, the Board of Directors and the Audit Committee did not consider or recommend these results, as their powers stand suspended under the Insolvency and Bankruptcy Code, 2016.

The National Company Law Appellate Tribunal (NCLAT) pronounced an oral judgement on July 13, 2026, dismissing an appeal filed by a promoter and disposing of an appeal filed by a farmer. The IRP relied on the assistance of key management personnel to prepare the financial statements, subject to disclaimers regarding the accuracy and completeness of the data provided by the former management.

Financial Performance

The company's financial performance for the quarter and year ended March 31, 2026, reflects the ongoing challenges during the insolvency resolution period.

The other equity balance stood at a negative ₹21,612.98 lakh as of March 31, 2026, compared to a negative ₹16,643.64 lakh in the previous year.

The National Company Law Appellate Tribunal (NCLAT) has upheld the Corporate Insolvency Resolution Process (CIRP) against Simbhaoli Sugars Limited, dismissing the appeal filed by promoter Ms. Gursimran Kaur Mann and disposing of the appeal filed by farmer Mr. Surender Pal Singh Mangat on July 13, 2026. Consequently, all interim orders stand vacated, and pending interlocutory applications are closed. The tribunal confirmed that the financial creditor, Oriental Bank of Commerce (now Punjab National Bank), had initiated recovery actions, including recalling the loan on November 1, 2017, prior to the Reserve Bank of India's February 12, 2018 circular, thereby validating the admission of the Corporate Debtor into CIRP.

The tribunal rejected arguments that the proceedings were initiated solely due to the RBI circular, which was struck down in the Dharani Sugars case. It noted that the debt and default were conclusively established, and no approved One Time Settlement (OTS) proposal was pending before the Joint Lenders Forum. The NCLAT found that the insolvency proceeding was independent of the RBI circular as the loan recall and legal notices preceded the circular's issuance.

Financial and Operational Context

Simbhaoli Sugars Limited had previously reported its audited consolidated financial results for the quarter and year ended March 31, 2026, with the statutory auditor issuing an adverse opinion. B.K. Kapur & Company stated that the financial statements did not give a true and fair view due to material uncertainties and non-compliance with Indian Accounting Standards (Ind AS). The company incurred losses resulting in negative net worth and negative working capital, with defaults in payments to lenders and farmers casting significant doubt on its ability to continue as a going concern.

The adverse opinion was driven by the non-provision of interest expenses on bank borrowings amounting to ₹8,997.64 Lakhs for the quarter and ₹34,990.72 Lakhs for the year. The cumulative unprovided interest liability aggregates to ₹2,10,020.35 Lakhs as of March 31, 2026. Additionally, the company failed to assess impairment losses on investments in and receivables from its subsidiaries, Simbhaoli Power Private Limited (SPPL) and Integrated Casetech Consultants Private Limited (ICCPL), aggregating to ₹22,862.61 Lakhs and ₹655.72 Lakhs respectively.

Regulatory and Stakeholder Directions

Addressing concerns regarding sugarcane farmers, the NCLAT directed the Resolution Professional to consider their claims in accordance with the law. The tribunal referenced the IRP's affidavit confirming adherence to tagging orders issued by the District Magistrate for the disbursement of cane prices. Operational headwinds persist, including directions from the Central Pollution Control Board to stop manufacturing at distillery units and adverse cane area reservation orders affecting raw material supply.